Which of the Following Is an Appropriate Definition of a Currency

question 2

Multiple Choice

Which of the following is an appropriate definition of a currency swap?

• A)A swap used to hedge against exchange rate risk from mismatched currencies on assets and liabilities.
• B)A swap used to hedge against the general depreciation of a currency.
• C)A swap used to hedge against the general appreciation of a currency.
• D)A swap used to speculate on the depreciation or appreciation of a currency.

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Information or data that directly opposes or conflicts with a hypothesis or widely held belief.

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